Facebook 'Adds A Friend In Payments,' According to SunTrust's Bob Peck

In a report published Wednesday, SunTrust Robinson Humphrey analyst Robert (Bob) Peck detailed five benefits

Facebook IncFB

could realize from a Payments feature in its Messenger product. Peck noted that Facebook has the opportunity to engage its 500 million plus user base on Messenger and one billion plus user base on Facebook. The analyst continued that with Facebook payment acting as a "PayPal-like enabler," a $1 billion revenue opportunity exists for Facebook. Peck detailed five benefits of the product for Facebook:

Facebook could implement an in-ad "buy button" now that it would have a user's payment information.
Facebook could "close the loop" for advertisers and merchants, by seeing purchases.
Facebook could leverage massive adoption to offer a monetizeable product for offline merchants.
Facebook could drive deeper engagement on its platform.
Facbeook could replicate the platform for its WhatsApp user base.

Shares of Facebook are Buy rated with a $90 price target.

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